Question 3 (10 MARKS) In your new job, you are asked to recommend an IPO price for your client, Prism Technologies. Prism Technologies is a relatively young company in the semiconductor industry and has current earnings of $10m per annum. They are planning to issue 20 million shares. You are planning to use the price-to-earnings multiple valuation method. You have collected the following data of company P/E- ratios: Company Name Spark Semi Semi Co Proper Copper The Pancake House Industry Semiconductors Semiconductors Commodities (Copper) Hospitality P/E ratio 27.1 26.5 11.2 14.2 a) Which company or companies would you include in your analysis? Why? (2 marks) b) Based on your recommendation in a), estimate the market value of one share in Prism Semiconductors